13 June 2007 Securing the lifeblood of the NSW economy

1. 13 June 2007 Securing the lifeblood of the NSW economy Presentation to the BTRE Transport Colloquium Presentation by Greg Martin Chief Executive Sydney Ports Corporation

2. Introduction and Contents • World Container Growth • National Container Port Developments • Securing Port Botany’s Growth • Port Infrastructure Improvements • Port Botany Expansion • Enfield and Intermodal Terminal Network • Road and Rail Transport • Operational Issues • Congestion • Hours of operation • VBS • A Third Stevedore? and Future Plans

3. World Container Trade • World container movements now exceed 400 M teu per year • Australia’s share is around 5.5 M teu per year • World volume projected to grow to 672 M teu by 2011 • Every trade lane in the world will exceed 7% per year growth to 2012 at least • Port capacity is currently 550 M teu, hence at least 122 M teu additional capacity required by 2011 • (Source – International Ports and Harbours Conference • - Houston May 2007)

4. National Container Port Developments • Brisbane – $140M on channel deepening to 15m and new berths 11 & 12 at Fisherman Islands (Hutchison announced as new port operator) • Sydney – $1 billion on Port Botany Expansion including terminal operator development cost • Melbourne – $800M ? for channel deepening required for post-Panamax vessels • Adelaide – $45M to deepen Outer Harbour channel by 2m to 14.2m for post- Panamax vessels • Fremantle – Planning is well advanced for a new container port near Kwinana with suitable road & rail links

5. Population Growth in Sydney

6. Sydney’s container trade growth projections Long term containerised cargo growth 1970-2006

7. Ship size trends

8. Approved Port Botany Expansion (60 ha – 5 berths)

9. Port Botany Expansion • Request for tender March 2007 • Award major construction contract in late 2007 • Major works to commence in early 2008 • Stevedore procurement - 2007 and 2008 • Appoint terminal operator in 2008 • Complete works and commission first berths – 2011 Artist’s impression of the expanded port

10. Investment by Patrick terminal yard 2 new RMGs arrive at Port Botany

11. DPW’s rail extension at Port Botany Botany Yard Patrick P&O POTA CBFCA – March 2007

12. The Growing Road and Rail Task

13. Rail Network BTRE – June 2007

14. Enfield Intermodal Logistics Centre • Intermodal rail / road interchange - 300,000 TEU capacity • Warehousing for container pack / unpack • Empty container holding areas • Commercial / light industrial park • Ecological / community • area • Operational 2009/10

15. Foreshore Road A congested F3 Road congestion

16. Sydney’s Trucking Percentages Source: Warren Centre – Sustainable Transport in Sustainable Cities (and SPC)

18. Operational Issues • Port Capacity • Rapid trade growth • Stevedores purported capacity • Hours of Operation • Mismatch of Hours • Hours per day • Day of the week

19. Mismatch of hours Source: NSW Sea Freight Council 2004 CBFCA – March 2007

20. Port Botany Container Terminals Proportion of Truck Arrivals by Hour of Day 1999-2013

21. Proportion of truck arrivals by day of weekPort Botany container terminals

22. Stevedoring Issues • Improved VBS and IPART Inquiry • SPC has long supported a VBS which is equitable, efficient, transparent and recovers costs • ACCC investigation into stevedores’ R&D procedures prevented our attempt to bring both stevedores together • SPC supports NSW Government’s IPART inquiry as it will improve transparency and knowledge of system • Submissions to IPART closed last week (8 June 2007)

23. Port Botany Logistics Taskforce • Taskforce provides opportunity for the various arms of Government to be coordinated under one process • IPART Inquiry already underway • Possible use of Super B doubles within the Port Botany precinct under review • Assists with the coordination of NSW Gov approach for Auslink 2 funding.

24. Stevedoring Issues • Should we have a 3rd stevedore ? • Government’s position is that it would prefer a 3rd stevedore but hasn’t yet decided whether current stevedores are to be excluded from process • SPC proposes to seek EOI’s later this year • A third stevedore will provide increased competition • However, economies of scale will be reduced and existing operators may slow down investment in new equipment • New stevedore doesn’t have to be in all major container ports • Brisbane’s decision to appoint Hutchison is a significant one.

25. Future Actions to Secure Lifeblood of NSW Economy • Complete Port Botany expansion • Develop Enfield ILC subject to obtaining formal NSW Government planning approval and establish business model • Pursue Federal and State Government agreement to develop Moorebank as an ILC • Assist NSW Government to develop policy for improved road access to Port eg expand M5 and/or build M4 East • Pursue Improvement of VBS • Promote increased share of rail use (by carrot or stick) to 40% • Increase industry hours of operation – 24/6 and ultimately 24/7 • Obtain an equitable share of Auslink 2 funding BTRE – June 2007

26. BTRE - June 2007